Keeping
your checkbook balanced every month will help
you stick to your budget and keep you from
overdrawing your account.

HOW
TO BALANCE YOUR CHECKBOOK

After every month,
your bank will send you a checking
account statement. The
statement is the bank's record of all
activity that occurred with your
checking account, including checks
written, deposits, ATM withdrawals,
fees, etc. Along with this
statement you may receive the actual
checks written or a copy of those
checks.

Using this statement,
and your checkbook, use the
following steps to balance, or
reconcile, your checkbook.

Also, to teach and learn more about
balancing your checkbook and other check writing
activities, see our
Check Writing category for some helpful
worksheets and lessons.

STEPS FOR RECONCILING

STEP 1

In your checkbook, make a checkmark in the appropriate box
for each check returned or noted on your statement. In addition, also mark
all ATM or other electronic transactions, and all deposits. This way, you
will be able to identify all transactions recorded by the bank or financial
institution handling your checking account.

STEP 2

Record in your check register any transactions listed on your
bank statement that were not recorded in your register. This may include
ATM or debit transactions, bank fees, etc.

STEP 3

The back of your bank's statement will usually have a checking
reconciliation form. Use this form to reconcile your checking account.
The form may vary, but usually includes the following steps:

A. Write the ending balance shown on your bank statement.

B. Add the total amount of deposits made that were after
the ending date of the bank statement (outstanding), and therefore do not appear
on the statement. The reconciliation form usually has a place where you
can list and total these deposits.

C. Subtract the total of any checks still outstanding
(checks that you have written that do not show up on your bank statement).
The reconciliation form should have a place where you can list and total all
outstanding checks.

This amount should then equal the amount listed in your check
register or checkbook. If not, you will need to check each of your
transactions and also possibly need to check your math.

In summary:

Bank Account Statement Ending Balance

+ Deposits Outstanding

- Checks Outstanding

= Ending Balance in Checkbook Register

KEEPING YOUR ACCOUNT BALANCED

Every time you record a check, you should be sure to record the
transaction in your check register. That way, you will always be sure of
your account balance. Record in your check register any time you make a
transaction including using an ATM. Also, be sure to keep a running
account balance after each transaction.

For additional related material for
teaching and learning about check writing, please see the following:

CHECK WRITING, CHECKING ACCOUNTS,
CHECKBOOKS, LESSON PLANS, LESSONS
Learn how to write a check, make checking account deposits and withdrawals, manage and balance your checkbook, and
bank reconciliation with your monthly checking account statement. Worksheets, lessons, and exercises are appropriate for both students involved in learning
checking basics, as well as those looking for a curriculum to practice basic math and problem solving skills.